I am working in a newly formed company. My query is that we are planning to pay staff salaries through the bank. Our Sales Executives are earning a Salary + Commission for the sales. The salary is paid between the 5th and 10th of every month, and the commission is paid by the end of the month.
So, if we are paying both through the bank, should the staff have to pay Income Tax? Their basic salary is Rs. 9000.00, and the commission will be nearly Rs. 26000.00 per month. Please advise whether we should go through the bank or if there is any other way to pay the commission to avoid income tax.
Thanks and regards,
Nayeem Manzoor
From India, Palakkad
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So, if we are paying both through the bank, should the staff have to pay Income Tax? Their basic salary is Rs. 9000.00, and the commission will be nearly Rs. 26000.00 per month. Please advise whether we should go through the bank or if there is any other way to pay the commission to avoid income tax.
Thanks and regards,
Nayeem Manzoor
From India, Palakkad
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commission is part of income and it comes under I.T. ambit. Pon
From India, Lucknow
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616From India, Lucknow
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HI, As discussed you need to pay Income Tax on both salary + Commission, as it is a part of your salary payable to your sales team. You need to pay tax on the same even if don’t pay thru bank.
From India, Ahmadabad
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From India, Ahmadabad
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Income tax should be paid by each eligible employee. You cannot avoid it, and the employer is liable to collect all investment proof and earning details. Based on that, the employer will deduct TDS. This will be a serious issue, and the employer may be penalized if found guilty. Hope you find this appropriate.
From India, Bhubaneswar
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From India, Bhubaneswar
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SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls